Share

Alibaba opens second USA data center in $1 billion cloud push

Chinese cloud purveyor Aliyun, a division of the Middle Kingdom’s Amazon equivalent Alibaba, has opened its second data center in Silicon Valley.

Advertisement

“The AliCloud portfolio at the new data center will include more than 10 cloud services that are created to assist customers focused on accelerating innovation, including start-ups looking to reduce the cost of cloud-based service delivery and big data analytics, as well as established businesses in the gaming, multimedia and mobile Internet industries”, Alibaba said in a statement. In a letter published on Thursday as part of an elaborately packaged annual report created to ease the concerns of investors after a yearlong decline in Alibaba’s stock price, founder and executive chairman Jack Massachusetts said that the company’s cloud computing business is maintaining an annual growth rate of over 100 percent.

The facility will accommodate big data requirements of customers in the USA west coast for the next few years, before expanding its horizon. Back in June, Alibaba announced a billion cloud computing push.

The new data center in California is AliCloud’s ninth globally.

Although smaller than a few of its peers like Amazon Web Services, the company is rated by analysts as the largest cloud services provider in China, and has the opportunity to expand its business in Asia and other markets as a few of its Chinese customers expand their operations outside China.

Ethan Sicheng Yu, veep of the internationally-branded AliCloud, said: “Our second United States data center is situated in Silicon Valley, which is the epicenter for technology innovation world-wide”.

AliCloud’s fast expansion also suggests that the e-commerce company aims to be more than just a bit player in the global cloud computing market.

Advertisement

AliCloud also struck a number of partnerships with companies to integrate new products and services into its cloud platform.

Alibaba the Amazon of China opens its second data center in Silicon Valley